The Fair Work Commission has issued the Social, Community, Home Care and Disability Services (SCHADS) Industry Award for 202324, effective from 1 July.

Employer Obligations

Providers must remain vigilant about their obligations under the SCHADS Award, ensuring that staff receive at least the minimum entitlements. With updates to modern awards, it's crucial to revise payroll systems to avoid breaches. Wage increases necessitate corresponding rises in allowances. Failure to adjust allowances appropriately constitutes underpayment, which can lead to significant penalties and back-pay liabilities, even for inadvertent mistakes.

Classifications and Employment Levels

The SCHADS Award classifications and employment levels are based on employees' qualifications, experience, and primary duties. The minimum wage rates are divided into four groups:

1. Social and Community Services Employees
2. Crisis Accommodation Employees
3. Family Day Care Employees
4. Home Care Employees

2023 SCHADS Award Pay Rates

• Level 2.1: $1223.85 weekly, $32.21 hourly, $40.26 casual hourly
• Level 2.2: $1262.23 weekly, $33.22 hourly, $41.52 casual hourly
• Level 2.3: $1300.60 weekly, $34.23 hourly, $42.78 casual hourly
• Level 2.4: $1335.29 weekly, $35.14 hourly, $43.92 casual hourly
• Level 3.1: $1367.86 weekly, $36.00 hourly, $45.00 casual hourly
• Level 3.2: $1407.17 weekly, $37.03 hourly, $46.29 casual hourly
• Level 3.3: $1437.28 weekly, $37.82 hourly, $47.28 casual hourly
• Level 3.4: $1466.77 weekly, $38.60 hourly, $48.25 casual hourly
• Level 4.1: $1577.80 weekly, $41.52 hourly, $51.90 casual hourly
• Level 4.2: $1618.98 weekly, $42.60 hourly, $53.26 casual hourly
• Level 4.3: $1660.56 weekly, $43.70 hourly, $54.62 casual hourly

2024 SCHADS Award Pay Rates

Projections indicate a general increase of approximately 4 to 5% in SCHADS Award pay rates starting from 1 July 2024. These rates are expected to align with the Consumer Price Index (CPI), which recorded an inflation rate of 4.3% over the preceding year. Employers and employees in the SCHADS sector should stay informed about these potential changes to ensure fair and competitive compensation standards. Monitoring official updates or subscribing to relevant email notifications is advisable.

Determining Applicable Pay Rates

Understanding which pay rates apply involves several key steps:

1. Identify the SCHADS Award sub-classification based on job duties or descriptions.
2. Determine the employees pay point or level by assessing their experience and industry-related training.
3. Establish the employees type (e.g., full-time, casual, shift worker).

SCHADS Award Classifications

The SCHADS Award pay rates are organized as follows:

• Four Sectors:
  • Social and Community Services
  • Crisis Assistance and Accommodation
  • Family Day Care
  • Home Care
• Pay Point Levels:
  • Social and Community Services: 8 levels (Level 2, Level 3, and Level 4 have 4 pay points each).
  • Crisis Assistance and Accommodation: 4 levels (Level 1 and Level 2 have 4 pay points; Level 3 and Level 4 have 3 pay points).
  • Family Day Care: 5 levels (each level has 4 pay points).
  • Home Care: 5 levels (each level has 2 pay points, except for Level 1 which has 1 pay point).

Ordinary Hours of Work

Under the SCHADS Award, ordinary work hours for a day worker are between 6:00 am and 8:00 pm, Monday to Sunday. The standard work week is 38 hours, averaged over:

• A week of five days with shifts not exceeding 8 hours
• A fortnight of 76 hours with 10 shifts not exceeding 8 hours each
• A four-week period of 152 hours with 19 shifts of 8 hours each

Shifts can extend to 10 hours if agreed in writing.

Minimum Wage

Minimum wages under the SCHADS Award vary based on:

• Day-to-day functions and responsibilities
• Occupation level
• Qualifications and experience
• Length of employment with the current employer

Higher classification levels correspond to higher pay rates.

Allowances

• Broken Shift Allowance: $20.12 per shift for 1 unpaid break; $26.63 per shift for 2 unpaid breaks.
• First Aid Allowance: $19.76 per week for full-time; $0.52 per hour up to $19.76 per week for part-time or casual.
• Hot Work Allowance: $0.59 per hour for 40C-46C (employed before 8 August 1991); $0.71 per hour for over 46C (employed before 8 August 1991).
• Laundry Allowance: $0.32 per shift up to $1.49 per week for uniform; $0.32 per shift for non-uniform.
• Meal Allowance: $16.20 per meal.
• On Call Allowance: $23.67 for any 24-hour period (Mon-Fri); $46.87 for any other 24-hour period or public holiday.
• Sleepover Allowance: $57.99 per sleepover.
• Special/Protective Clothing Reimbursement: Reimbursement for rubber gloves, special clothing, or safety equipment required by the employer.
• Uniform Allowance: $1.23 per shift up to $6.24 per week.
• Repair and Replacement of Clothing (Not Uniform): Reimbursement for costs.
• Telephone Reimbursement: Reimbursement for rental charges for on-call employees.
• Overnight Away from Home Reimbursement: Reimbursement for reasonable accommodation and meals.
• Travelling Expenses Reimbursement: Reimbursement for agreed costs of fares, meals, and accommodation.
• Vehicle Allowance: $0.99 per km.

Impact on Workers

• Positive Impact for Direct Care Workers: The SCHADS Award changes are likely to benefit direct care workers through increased entitlements such as leave, payroll, workers' compensation, and superannuation, enhancing their well-being and financial stability.
• Negative Impact for Non-Care Workers: Non-care workers may not see similar benefits from the SCHADS Award changes, potentially leading to disparities, dissatisfaction, and decreased morale among non-care workers who may feel undervalued compared to their care worker counterparts.

Conclusion

The updated SCHADS Award rates emphasize the need for providers to stay informed and compliant. The adjustments, including a general wage increase and revised allowances, aim to better reflect the cost of living and ensure fair compensation. Employers should promptly update their payroll systems to incorporate these changes and review staff classifications to prevent breaches. Ensuring accurate and timely adjustments will help avoid penalties and foster a fair work environment in the SCHADS sector. For detailed updates, consulting the Fair Work Ombudsmans resources is recommended.

FAQs

What are the key changes in the SCHADS Award rates for 2024?

The SCHADS Award rates for 2024 include a general increase of 4-5% in pay rates and updated allowances, aligning with the Consumer Price Index to better reflect current living costs.

How should employers adjust their payroll systems for the new SCHADS Award rates?

Employers should update their payroll systems to reflect the new pay rates and allowances, review staff classifications, and ensure all entitlements are accurately calculated to avoid underpayment.

What are the penalties for not complying with the new SCHADS Award rates?

Penalties for non-compliance can be significant, including fines and back-pay liabilities. Ensuring accurate pay rates and allowances are crucial to avoid these costly repercussions.

Source - https://sosamericapac.org/